ERCAS Working Papers. Anti-Corruption Programmes, Studies and Projects in Estonia : an Overview

Transcription

1 ERCAS Working Papers European Research Centre for Anti-Corruption and State-Building Working Paper No. 5 Anti-Corruption Programmes, Studies and Projects in Estonia : an Overview Aare Kasemets Ülle Lepp September

2 Contents Executive summary 3 1. Introduction 4 2. Methodology Information Sources: Estonia Sampling Some observations, limitations and problems Overview of international and local anti-corruption initiatives: Estonia Context International donors programmes and reports on Estonian situation Council of Europe/GRECO Freedom House Nations in Transit: Corruption, Civil Society, Judicial Framework Freedom House Freedom of the Media Score and IREX sustainability index Transparency International Other reports and results of studies: outline of the OECD Report (2008) A country brief report and some results of anti-corruption studies: Estonia Some results and conclusions of Estonian anti-corruption studies Measurement of outputs, outcomes and impacts of the anti-corruption projects Institutional and financial support for NGO-s anti-corruption activities: Estonia Fighting against corruption: current signals, important ongoing projects and trends in Estonia Current signals, priorities and trends in the anti-corruption public policy Most important anti-corruption projects in last years (design of trends): Estonia Appendixes 38 Appendix 1: Estonian experts in anti-corruption issues 38 Appendix 2. Publications and articles of Estonian experts 39 Appendix 3a: The structure for content analysis of the anti-corruption projects 41 Appendix 3b: Database of anti-corruption research and/or development projects

3 Executive summary This Estonian report is made for the international research project Civil society as anticorruption actor. What makes it work? initiated by Romanian Academic Society. The general sample is including all Estonian anti-corruption programmes, audits and projects from 1998 to 2009 in following categories: A) anti-corruption programmes, implementation reports and audits (as institutional/budgetary framework; n = 14); B) research projects (e.g. input for anti-corruption trainings and public debates, n=25); C) other anti-corruption projects and grants (e.g. action-plans, trainings, networking, publications. It is the most important part; n = 22); D) Ongoing anti-corruption programmes and projects in Estonia (n = 6); E) articles, publications. The detailed content analysis of project documentation was initiated only in those cases (B and C), where the corruption is main theme in the project and more or less related to local NGO-s activities (database: n = 25 projects, ). Both international donors reports and local projects were analysed. The analysis of the local anticorruption projects shows that usually there is available the information on planned outputs, outcomes and impacts of the projects, in many cases we can find also the achieved outputs and outcomes, but in most cases there is no concrete public information available on real impacts and sustainability factors of the anti-corruption projects. Keywords: corruption, anti-corruption, programmes, projects, awareness, interaction, impact assessment. 3

4 1. Introduction The following Estonian overview is made for the international research project Civil society as anticorruption actor. What makes it work? 1 We are mapping all related anti-corruption programmes, research and development projects and researching under what circumstances civil society is an effective anticorruption actor, and what type of project seems to work. The interval we are looking at is from the first year of Nations in Transit reports (or Transparency International [TI] reports) - roughly from 1997 until In addition, the Estonian overview and database will be given to the Estonian Social Science Data Archive (sub-database on anticorruption studies for the academic and public use) Methodology According to the draft methodology designed by Laura Stefan SAR team, firstly we document and download (or write to ask for) as many anticorruption projects as possible. We are interested in any anticorruption projects with a civil society component. After preliminary observations of the data and documents available we decided to create a draft database, which will be sent for the updating 3 to the experts/organizations/institutions dealing with anti-corruption programmes, research and other projects in Estonia. In the draft database the unit is the project (see Appendix 3a). We designed a bit the preliminary draft methodology adding the description of two stage sampling. Secondly, we analysed and are making a summary of research findings and expert opinions dealing with civil society as an anti-corruption actor, also different outcomes of anti-corruption projects, e.g. main problems and solutions/proposals (table 3), links between research and other activities (e.g. awareness campaigns, trainings, publications, policy proposals) and the possible impact indicators measuring the interactive influence 4 of NGO networks to the effectiveness of anticorruption programs and projects. 1 The leading researcher of the project is Laura Stefan (anticorruption expert, Romanian Academic Society - SAR) and the project is funded by Open Society Institute Think-Tank Initiative (Budapest). Participation of Estonian partners is partly related to the article dealing with relations of political motivation and anti-corruption programmes: Bryane Michael & Aare Kasemets (2007) The Role of Initiative Design in Parliamentarian Anti-Corruption Programmes. The Journal of Legislative Studies, 13, Estonian Social Science Data Archive and its European network 3 s to Estonian experts (Jan/Feb/March). // We ask for your help in 3 questions: 1) updating the general sample (table 1); 2) updating project information made/commissioned by your organisation, e.g contact information (Appendix 3); c) If needed and possible, a short skype-interview.. 4 According to former studies (e.g. Michael & Kasemets 2007) the interaction of researchers, NGO networks and mass media can raise the political motivation in combination with political capital (votes) and create preconditions for better regulation and good governance. 4

5 Thirdly, we can analyse and compare with other CEE countries what makes the civil society work as an anticorruption actor and what kind of measures are working better than others. One of the outcomes of this analysis is the feedback for the donors, NGO networks and public authorities Information Sources: Estonia Ministry of Justice and Anti-Corruption studies Ministry of Interior: Open Estonian Foundation (Avatud Eesti Fond): Institute : Transparency International Estonia (MTÜ Korruptsioonivaba Eesti): Network of Estonian Nonprofit Organisations (NENO): National Foundation of Civil Society supported projects: Journal of Estonian Parliament (Riigikogu Toimetised): Estonian State Audit Office, audit reports: Estonian Helth Insurance Fund: Estonian Research Information System (Eesti Teaduse Infosüsteem): University of Tartu Library - Estonian Social Science Data Archive: Statistics Estonia: Sampling The general sample is compiled on the bases of over mentioned web sites. In addition to project reports available via Internet there was used also articles, summaries, financial year reports of NGOs, information requests, social science data archives etc. In the general sample there are four different categories, e.g. A) anti-corruption programmes, its implementation reports and audits (as an institutional and budgetary framework for different activities and projects); 5 B) studies and research projects dealing with anti-corruption issues (e.g. 5 Anti-corruption programmes, its implementation reports and audits (as an institutional and budgetary framework) are the source for follow-up analysis. The problem is that the information about smaller contracts and projects is not always 5

6 input for training programmes and public debates); C) other anti-corruption projects and grants (action-plans, trainings, networking, publications etc NB! It is the most important part for the SAR project); D) Ongoing programmes and projects dealing with anticorruption issues (see Table 1); E) articles, publications (see Appendix 2). The sample forming was based on research and other projects (see Table 1 B and C) dealing with corruption in Estonia from 1997 to The detailed content analysis of project documentation was initiated only in those cases, where the corruption is main theme in the project (see table 1 B and C: 5 or 4 points) and the role of civil society actors (NGO-s) were also observed. The database of the sample is available in separate Excel table (Appendix 3b). According to expectations of SAR team, the database includes mostly the research and awareness development projects developed internally, within the country by local NGOs or by Estonian public authorities in close co-operation with NGO-s. We are looking for the trends in Estonia and what the role and impact of civil society has been on anti-corruption in gereral framework of public interactions. The general sample in Table 1 is mapping all anti-corruption programmes and projects available to give an overview about anti-corruption measures and possible intersectoral transactions. We are observing all those programmes (A), audits and projects (B, C, D) as an input and information source for different activities of civic anti-corruption networks (e.g. trainings and new projects). Table 1: Anti-Corruption programmes and projects in Estonia since 1998: general sample Name of the programme, audit, project etc **projects, which are in the appendix 3b and in detailed database (xls) Period Sponsor/Donor Implementation Corruption is: main theme > < subtheme Connection to NGOs: strong > < low Draft assessment by team A. PROGRAMS, PERFORMANCE REPORTS AND AUDITS (institutional framework of activities/projects: not added into database) Baltic Anti - Corruption Programme Governmental Anti- Corruption Strategy Honest State Open Estonia Foundation Estonian Government Institute Estonian Ministry of Justice in co-op with other ministries, State Chancellery and National Audit Office available via web sites. To find this information there is a need to analyse the annual working plans of ministries and governmental agencies. 6

7 Institutional support for Society Corruption-Free Estonia Open Estonia Foundation TI-Estonia (Korruptsiooniva ba Eesti MTÜ) 2 5 Preventing Corruption in Job Management of Districts and Towns** 2009 National Audit Office of Estonia (planned audit) National Audit Office of Estonia 5 2 Defence of Security and Freedom Sub-programs EC and Estonian Government Ministry of the Interior 3 2 Good Governance Program, e.g institutional support for Society Corruption-Free Estonia * Strategy Against Corruption * The Implementation Plan of Implementing Law Against Corruption Performance Report for 2008 of the Anti-Corruption Strategy Performance Report for 2009 of the Anti-Corruption Strategy Defence of Security and Freedom - Sub-programs Open Estonia Foundation & Soros Foundation Government, Ministry of Justice Estonian Government Estonian Government; Ministry of Justice Estonian Government; Ministry of Justice European Commission Open Estonia Foundation > TI- Estonia Ministries and Government offices government offices Ministry of Justice Ministry of Justice B. ANTI-CORRUPTION RESEARCH PROJECTS AND STUDIES Sociological surveys The State and the Society Corruption Limitation in Transitional Society (legal aspect)** Sociological public opinion survey Research About Corruption Distribution in Estonia ** The Health Sector and Licensing in Estonia ** EUMAP (EU Monitoring and Advocacy Program) Report about Corruption** Estonian Parliament Open Estonia Foundation Open Estonia Foundation Min of Social Affairs, Estonian Health Insurance Fund. PHARE and Open Society Institute Estonian Ministry of the Interior AS Saar Poll 1 2 Estonian Legal Centre (Eesti Õiguskeskus) Institute in co-op with AS Saar Poll Estonian Health Insurance Fund. Turu-uuringute AS Institute Analysis of the Public Information Law 2003 Transparency International Institute 4 1 7

8 Study: Access to the Public Information in Estonia ** Sociological study Corruption Research ** Corruption in Estonia: survey of three target groups ** Development of Local Governments Public Internal Financial Control (PIFC) System ** Transparency Through Awareness ** The Roles and Attitudes of Civil Servants in Estonia National Democracy Study 2006 ESTONIA: PHASE 1. REVIEW OF IMPLEMENTATION OF THE CONVENTION AND 1997 REVISED RECOMMENDATION. Analysis of the system of asset declaration in Estonia 2005 TI Open Estonia Foundation Ministry of Justice Ministry of Justice EU PHARE Program 2005 State Chancellery Open Estonia Foundation Institute (Centre for Corruption Analyses) Research was carried out by AS Turu- Uuringud MoJ, University of Tartu, Emor Ministry of Finance subcontract i Instituut Tallinn University, EMOR Open Estonian Institute OECD OECD Ministry of Justice Ministry of Justice 3 1 Corruption in Estonia: survey of three target groups ** Study on Protection of Whistleblowers in Estonia ** Criminal statistics on corruption 2007 REPORT ON THE APPLICATION OF THE CONVENTION ON COMBATING BRIBERY OF FOREIGN PUBLIC OFFICIALS IN INTERNATIONAL BUSINESS TRANSACTIONS AND THE 1997 RECOMMENDATION Project Estonian Courts Part of POWER Structure, Ministry of Justice Transparency International Ministry of Justice Ministry of Justice, University of Tartu, EMOR TI.ee & Corruption-Free Estonia Ministry of Justice OECD OECD Open Estonia Foundation Transparency International 5 4 8

9 Which Need Monitoring ** Estonia (in coop with Voluntary Activity Development Centre) Research Transparency in Estonian Journalism 2009 Ministry of Justice Transparency International Estonia (in coop NGO Estonian Journalism Training and Research Centre) 5 2 The Health Sector and Licensing in Estonia (Public opinion survey of stakeholders)** 2009 Ministry of Social Affairs, Estonian Health Insurance Fund Estonian Health Insurance Fund. Turu-uuringute AS 3 1 The Roles and Attitudes of Civil Servants in Estonia Whistleblower Protection Assessment Report on Estonia. Criminal statistics on corruption 2008 Preventing Corruption in Job Management of Districts and Towns State Chancellery EMOR TNS European Commission - DG Justice, Freedom and Security; in co-op with Transparency International Ministry of Justice National Audit Office of Estonia Transparency International Estonia Ministry of Justice National Audit Office of Estonia 5 2 C. ANTI-CORRUPTION PROJECTS and GRANTS (TRAINING, NETWORK, ETC) Rising Public Awareness on Corruption (Korruptsiooni teadvustamine avalikkusele)** Grant for participation at the conference/network Corruption in Post- Totalitarian States, (Amaty, September 15-16) Grant for participation at the joint anti-corruption seminar/network organised by Princeton University and Central European University ( ) Grant for participation at the seminar/network Open Estonia Foundation Open Estonia Foundation Open Estonia Foundation Open Estonia Foundation Institute 5 4 Agu Laius 5 2 Ene Andresen, Michael Gallagher 5 2 Ramil Pärdi 5 2 9

10 "Corruption in the CEE countries in the turn of the century" ( Ljubljana) Project Corruption-Free Estonia ** 2000 Open Estonia Foundation Institute 5 3 Project Increasing Transparency of the Democratically Elected Institutions by Educating the Members of Those Institutions ** 2001 Westminster Foundation for Democracy Institute 4 1 Publication (collection of articles) Corruption Possibility in Public Sector 2001 Open Estonia Foundation Institute 5 2 Increasing the Awareness of Estonian, Latvian and Lithuanian public Servants and Journalists about Internal Audit and Political Corruption** 2002 Open Estonia Foundation Institute 5 1 Increasing Public Awareness Problems Connected to Corruption using webpages, Newspaper Sõnumileht and Broadcasting** 2002 Open Estonia Foundation Institute 5 3 Translating and Adapting TI Anti-Corruption Handbook** 2002 Open Estonia Foundation Institute 5 2 Reducing Corruption in Estonia /(training and risk assessment) 2003 European Commission, Phare. Ministry of Justice 5 2 Strengthening the Local Government System Integrity by training Public Servants** 2004 Open Estonia Foundation Institute 4 1 Project New Civil Servants A Customizing Training ** 2004 EU and The State Chancellery of the Republic of Estonia Association of Municipalities of Estonia in co-op with Estonian Legal Centre 2 1 Project Preventing Corruption in the Level of Local Governments 2007 European Social Foundation? Association of Municipalities of Estonia (AME) 5 1 Managing Conflicts of Interest in the Public Sector: A Toolkit (OECD 2005, translation) 2007 OECD, The State Chancellery The State Chancellery 3 1 National wide corruption preventing project Fight Against Corruption in Local Governments 2007 Estonian Ministry of the Interior Police North - Prefecture

11 Manifesto of NGO-s prior the parliamentary elections 2007 Open Estonia Foundation and NENO Project Establishing Civil Society Network Fighting Against Corruption ** 2008 (1 st stage) National Foundation of Civil Society Transparency International - Estonia 5 5 Project With Business Ethics Against Corruption ** 2009 Nordic Council of Ministers Office in Estonia Transparency International - Estonia 5 2 Project Preventing Corruption in Estonian Journalism** 2009 Ministry of Justice Transparency International - Estonia 5 4 Manifesto of NGO-s prior the local government (municipalities) elections Information campaign for business leaders, once a year, e.g. seminars: Cartel crimes and programs against them Honest business in the states, where honest business is impossible , 2009 Open Estonia Foundation Estonian Ministry of Justice NENO Estonian Ministry of Justice in co-op with Estonian Chamber of Commerce and Trade and TI- Estonia D. ONGOING ANTI-CORRUPTION PROJECTS (not added into database Appendix 3b) Blowing the Whistle Harder: Enhancing Whistleblower Protection in the European Union Establishment of anticorruption network of non-governmental organisations National survey of corruption Curbing corruption by enhancing Estonian private sector integrity Enhancing Internal Supervision Capacity of Local Governments in Estonia National Integrity Study (May) European Commission - DG Justice, Freedom and Security National Foundation of Civil Society Ministry of Justice National Foundation of Civil Society Partnership For Transparency Fund European Commission - DG Justice, Freedom and Security Transparency International Estonia Transparency International Estonia Ministry of Justice in co-op with EMOR Transparency International Estonia Transparency International Estonia Transparency International Estonia Aare Kasemets, Hermo Kuusk and Ülle Lepp in co-operation with Mari-Liis Sööt, Agu Laius, Kelly Grossdahl, Liina Kuusik, Asso Prii and Anna Markina (see appendix 1). 11

12 2.3. Some observations, limitations and problems In many projects the corruption is an important sub-topic, but there are no impact indicators available. Corruption subject is changing more important topic from beginning of 2001 and from since the sub-themes of corruption are considered more concrete. Also, in last decade the discussion on different forms of corruption became more actual in the public administration and media debates. In many cases the international studies (TI, Freedom House, GRECO etc) and their communication has been an important impact factor to raise the public awareness on corruption. The results of the studies are used as inputs for local projects. On the other hand there are not so many research and other projects available where corruption topic is closely connected with NGO-s activities as a main theme. The information in the public databases is not sufficient to answer all questions in the database (Appendix 3a-b). In most cases there is a need for an additional study. Some research centres and NGO-s have finished their work and their websites are closed. Governmental anti-corruption programmes, its implementation reports and audits (part of institutional framework) are the source for follow-up analysis. The information about smaller contracts and projects is usually not always available via web sites. To find this information there is a need to analyse the annual working plans and reports of the ministries. Comparative analysis of projects expected outcomes and impacts in different CEE countries will be problematic due to different institutional framework (e.g. cultural, normative etc subsystems and routines in 3 sectors, number of population and/or NGOs, hierarchies etc). 3. Overview of international and local anti-corruption initiatives: Estonia 3.1. Context The international research project Civil society as anticorruption actor. What makes it work? coordinated by Romanian Academic Society (SAR) and funded by Open Society Institute (Budapest) is providing a good framework to create a complex overview on all interrelated anticorruption programmes, research and awareness development projects focusing on question under what circumstances civil society is an effective anticorruption actor, and what type of project seems to work? The project is also giving a feedback to donors on less or more effective measures in different CEE countries and possibility for learning processes. 12

13 3.2. International donors programmes and reports on Estonian situation Council of Europe/GRECO 6 According to GRECO reports and other studies dealing with legislative regulation of anti-corruption measures, the legal framework is developed quite well in last decade except 3-4 fields: a) transparency of party funding, b) public procurement in the local authorities; c) some important details of Penal Code related to Council of Europe and OECD recommendations (see p ). 7 Expert opinion about rating: best fit least fit. Legal framework: examples on sanctions Giving a bribe and accepting a bribe are punishable by between 1 and 5 years of imprisonment or, in case of aggravating circumstances, between 2 and 10 years. As for granting of gratuities and accepting of gratuities, sanctions range between a pecuniary punishment and up to 3 years imprisonment; in aggravated cases, the same acts are punishable by 5 years imprisonment at most. In the case of passive bribery offences, further aggravating circumstances are acts committed by request, by a group or on a large-scale-basis (i.e. the value of the bribe or gratuity is at least 100 times the monthly minimum salary and therefore ca 27,000 EUR). Sanctions for arranging a bribe and arranging a receipt of gratuities range between a pecuniary punishment and up to 1 year of imprisonment; in case of aggravating circumstances, the same acts are punishable by a pecuniary punishment or imprisonment for at most 3 years. In all of these cases of bribery offences, the acts committed by a legal person are punishable by a pecuniary punishment and in aggravated cases, by a pecuniary punishment or compulsory dissolution. Pursuant to section 44 (6, 8) Penal Code (PC), a pecuniary punishment may be imposed as a supplementary sanction together with imprisonment or, in the case of a legal person, with dissolution. Section 49 PC provides that a court may deprive a convicted offender of the right to hold a certain position or operate in a certain area of activity for up to 3 years if the person is convicted of a criminal offence relating to abuse of professional or official status or violation of official duties. Section 16 of the Public Service Act enumerates the persons who are not to be employed in service such as, for example, a person under preliminary investigation for or a person accused of a criminal offence for which the law prescribes imprisonment (which is the case with giving or accepting a bribe), or a person who has been punished for an act of corruption. Section 38 of the Public Procurement Act provides that persons under sanction for certain offences, including offences related to office, are prohibited from participating in public procurement procedures. The Estonian Penal Code, which was completely revised in 2002 and last amended in 2007, provides a fairly sound basis for the criminalisation of the various corruption offences. Likewise, the 6 Estonia joined GRECO in The Evaluation Reports (2001a-b, 2003, 2004, 2007) are available on GRECO s homepage ( 7 Estonia is not represented in the Global Integrity Report available at 13

14 officials interviewed during the on-site visit considered the existing criminal laws sufficient and the enforcement framework satisfactory, explaining the limited case law by the recent legislative reforms and by the small size of the country. The GET identified a number of inconsistencies and deficiencies in the existing system as compared with the standards of the Criminal Law Convention on Corruption (ETS 173) and its Additional Protocol (ETS 191). On the basis of the legislation in force, the GET recommends to ensure that active and passive bribery of members of domestic public assemblies, members of foreign public assemblies and international parliamentary assemblies are criminalised in accordance with Articles 4, 6 and 10 of the Criminal Law Convention on Corruption (ETS 173). Also, the GET can conclude that the scope of section 288 (2) PC does not fully meet the requirements of Articles 7 and 8 of the Convention which refer to any persons who direct or work for, in any capacity, private sector entities. Given that the fight against corruption is one of the priorities of Estonian criminal policy since 2004, that a new anti-corruption strategy was launched in 2008, the GRECO recommendations should be seen as a timely contribution to the ongoing reform process. In view of results of analyses, GRECO (2008) addresses the 8 recommendations to Estonia, e.g.: 1) to ensure that active and passive bribery of members of domestic and foreign public assemblies and members of international parliamentary assemblies are criminalised in accordance with Articles 4, 6 and 10 of the Criminal Law Convention on Corruption (ETS 173, 64); 2) to amend current legislation in respect of bribery in the private sector in order to clearly cover the full range of persons who direct or work for, in any capacity, private sector entities as provided for in Articles 7 and 8 of the Criminal Law Convention on Corruption (ETS 173) ( 65); 3) to criminalise active and passive bribery of domestic and foreign arbitrators in accordance with articles 2, 3 and 4 of the Additional Protocol to the Criminal Law Convention on Corruption (ETS 191) and to sign and ratify this instrument as soon as possible ( 66); 4) (1) to criminalise active trading in influence as a principal offence; (2) to include the request of an advantage in the offence of passive trading in influence; (3) to clarify what should be considered illegal use of influence in order to ensure that all instances of an asserted or confirmed improper influence are covered ( 72); 5) to establish jurisdiction over offences of bribery and trading in influence committed abroad by/or involving Estonian public officials and members of domestic public assemblies who are not Estonian citizens ( 75) Freedom House Nations in Transit: Corruption, Civil Society, Judicial Framework. 14

15 ESTONIA [scale: max 1 7 min] NIT Ratings Electoral Process Civil Society Independent Media Governance n/a National Democratic Governance n/a n/a n/a n/a n/a n/a n/a 2.25 Local Democratic Governance n/a n/a n/a n/a n/a n/a n/a 2.50 Judicial Framework and Independence Corruption n/a n/a According to Freedom House (FH), despite a public perception of corruption within the national government, Estonia is considered one of the least corrupt of the Eastern European and former Soviet states. Transparency International s 2004 Corruption Perceptions Index placed Estonia in a tie with Slovenia as the least corrupt of the new EU member states. Likewise, a 2002 OECD Anticorruption Network for Transition Economies report stated that the Law on Anticorruption provides the legal basis for the prevention of corruption and declared that Estonia has come a long way in creating a good legal basis for fighting corruption. According to FH there are 3-4 main reasons for relatively low level of corruption in Estonia: 1) the EU accession process has been an important factor in shaping Estonia s approach to corruption. According to a 2002 Transparency International report, the EU considers the fight against corruption in new member states to be a vital element in building administrative capacity, strengthening the judiciary, and ensuring financial control. It has, however, been generally supportive of Estonia s efforts and complimentary of the country's low levels of corruption. 2) A second reason for Estonia s low levels of government corruption is, arguably, its laissez-faire approach to economics. To say that the Estonian economy is free from excessive bureaucratic regulations, registration requirements, and other controls that increase opportunities for corruption is an understatement. As 2004 came to a close, the Heritage Foundation Index of Economic Freedom rated the Estonian economy the fourth most economically free in the world. An irony of the EU accession process is that the Estonian economy was too market oriented for its Western European EU partners. 15

16 3) The final cause of low levels of corruption, as well as the government s actions in 2003 and 2004 to address potential concerns, is a degree of intolerance among the general population for official corruption. Though corruption is far from rampant in the government, the Estonian population was not terribly trusting of any government figure other than the president in The electoral success of Res Publica in 2003 can, again, be attributed as much to displeasure with the previous ruling coalition (coupled with Res Publica s vague claims of aggressively pursuing corruption) as to disapproval of policy positions of the party. One of the first actions of the ruling coalition following its transition to power was the reconstitution of the Anticorruption Committee in the Parliament to collect, verify, and publish information about the assets of government officials. 4) Allegations of corruption are given an extensive airing in Estonia's print media. This is a likely reason for the public's perception of high levels of corruption among national political figures. Less attention has been paid in the electronic media to corruption, though it is unclear whether this is a result of political interference or simply a lack of investigative resources. Consistent with other concerns about the local level, observers have noted that local media outlets are less zealous than national media in exposing corruption. Yet whistleblowers, anticorruption activists, investigators, and journalists enjoy legal protections in Estonia, and there is little reason to feel insecure about investigating and reporting on cases of bribery and corruption. Civil Society In principle, there is a commitment to autonomous organizations by the Estonian government and media. Yet in practice, NGOs continue to face numerous challenges. Thanks in part to the development of the Estonian Civil Society Development Concept (EKAK) and its acceptance by the Estonian Parliament, the situation for NGOs has improved. The EKAK was adopted by the Parliament on December 12, This was followed in February 2003 by the signing of a memorandum of national accord by nearly 39 representatives of NGOs and the major political parties. This memorandum contained few specifics but committed to the development of a civil society based on ideals such as the rule of law. In August 2004, the implementation plan for the EKAK for the period was adopted. This agreement summarizes work to date by a joint commission of the government of the Republic of Estonia and the representatives of the citizens associations. (50%:50%) More important, it lays out a series of activities and authorities, a timeline for implementing legislation regulating NGOs, involvement of NGOs in the decision-making process, financing of NGOs from state budget, collection of new data about NGOs (annual reports of economic activities), the teaching of civic education, etc. See also some follow-ups: Ministry of Interior: 16

17 National Foundation of Civil Society Network of Estonian Nonprofit Organizations (NENO): Code of ethics of Estonian nonprofit organizations: NGO Sustainability Index for Central and Eastern Europe and Eurasia: USAID 2008 NGO SUSTAINABILITY INDEX SCORES Norther Tier: COUNTRY CZECH REPUBLIC Legal Environment Organizational Capacity Financial Viability Advocacy Service Provision Infrastructure Public Image Overall Score ESTONIA HUNGARY LATVIA LITHUANIA POLAND SLOVAKIA SLOVENIA Average To sum up, among the Northern Tier countries, Estonia and Poland were the only two countries in the region to improve their overall NGO sustainability scores during the year. In Estonia: a) the launch of the new National Foundation for Civil Society provided important mechanisms for support of NGO development; b) private donations to NGOs are on the increase; c) a campaign to clean up illegal waste disposal sites in Estonia mobilized huge numbers of volunteers and was a prime example of intersectoral cooperation, bringing together businesses, government and NGOs to achieve a common goal (those networks can mobilize also for anti-corruption activities); d) Manifestos. Prior to the parliamentary elections in 2007 and local government elections in 2009, Estonian NGOs have launched their political manifestos, addressing candidates with proposals for activities they can undertake if being elected to contribute to strengthening the NGOs and civil society as well as improving the cooperation between the non-profit and public sector. Manifestos have been supported by the Open Estonia Foundation and the Baltic-American Partnership Programme and moderated by NENO 17

18 Freedom House Freedom of the Media Score and IREX sustainability index Independent Media Estonian media are considered free by most observers. Media outlets are numerous, and legal protections for press freedom exist and are practiced. Also, there is little regulation over the establishment and functioning of media outlets, and investigative reporters are protected from victimization by state or nongovernmental actors in other countries. The Association of Estonian Broadcasters is included regularly in government discussions on draft laws affecting the media. One concern in recent years had been that Estonia's libel and defamation laws may have deterred some journalists from aggressively pursuing stories that cast government officials in a negative light. Although this may help explain the comparatively small number of stories about corrupt local officials, it is not consistent with the aggressive coverage of political corruption at the national level. In addition, changes to the penal code in Estonia, which came into effect in 2002, removed the libel and defamation provisions, which should ease journalists' fears in the future. Considering the small size of the country, the Estonian public enjoys an impressively diverse selection of print and electronic sources of information representing a range of political viewpoints. Most of these media outlets are privately owned (e.g. Norwegian and Swedish firms, A.K.), although some receive government assistance. It could be argued that there are too many media outlets for the size of the country, leading to what the International Press Institute has called a vibrant but saturated market in which the survival of the smaller outlets is threatened. Others see the situation over the last decade as one in which the media landscape has stabilized. In addition to the large number of daily or weekly newspapers available in Estonia, there are 5 public service radio stations, ca 25 private radio stations, 3 nationwide television stations, and ca 15 licensed cable TV broadcasters. Information from Russian-language media is accessible in print (more than 24 Russian-language newspapers and magazines), over the radio (5 private radio broadcasters and 1 public service radio station offer Russian programming), and on television (2 of the 3 television stations in Estonia offer regular Russian-language programming). ETA, the oldest news agency in Estonia, was privatized in 1999 and faced economic hardship almost from the start. The move left Estonia with only one news agency, the Baltic News Service. The Estonia Newspaper Association was founded as a professional association of print media outlets and has established guidelines for the conduct of print media in the country. For example, it developed rules for the coverage of political campaigns - providing space to candidates on an equal basis, indicating clearly when political information is in the form of an advertisement, and using caution when publishing results from public opinion polls. Likewise, the National Broadcasting 18

19 Council is charged with establishing similar guidelines for radio and television coverage of political campaigns. In February 2000, the Estonian Parliament passed legislation guaranteeing Internet access to the general population. As a result, Estonia has one of the most technologically connected populations in Europe, and some have nicknamed the country E-stonia. In addition to high rates of Internet usage, nearly 90 % of the population subscribes to mobile telephone service, and more than half had digital identity cards. The country s high rates of Internet usage come not only from the high % of residences with home computers, but also from a strong commitment to free Internet access points across the country. All schools in Estonia are connected to the Internet, more than half of all households pay their bills electronically, and the state portal allows citizens to access their various official records, logging into other information systems (for example e-tax Board, The Land Registry (in Estonian) etc and use the state portal services like registration of residence, download and fill official forms etc [see also TI Estonia (projects, news): ] Transparency International Year Number of states Estonia Index Number of studies * TI * Cyprus, Slovenia and Estonia have the same level. According to TI Estonia (Korruptsioonivaba Eesti = Corruption-Free Estonia) the explanation of main positive and negative reasons should be as follows (2009): 1) The public sector is more transparent due to egovernance tools; 19

20 2) Systematic and continued state level measures to deal with corruption; 3) Active research and investigation of corruption in legal authorities and media attention to the high level corruption cases; 4) Low transparency of local authorities (municipalities) activities (e.g. public management and procurement in small local authorities); 5) The problems with financing of political parties Other reports and results of studies: outline of the OECD Report (2008) General Efforts to Raise Awareness (excerpts) 8 In recent years, corruption has become an important topic of public debate in Estonia, in parliament, in civil society and in the media, partly as a result of the European Union accession process. Yet, prior to the on-site visit, the focus of the approach has been on the probity of Estonia s civil servants and the integrity of its public contracts. Little has been done to raise awareness of the foreign bribery offence. Estonia s anti-corruption efforts have focused almost solely on domestic corruption. Even more troubling is a widely-held view that doing business differently, as formulated by many panel participants, is a necessary aspect of doing business in some foreign countries. (a) Government Initiatives to Raise Awareness Estonia s legislative, organisational and other reforms over the past few years demonstrate its attention to fighting corruption. The government has adopted anti-corruption strategies for several years. It has maintained an anti-corruption Web site that refers to the OECD Convention and the criminalisation of foreign bribery. In 2005, the definition of corruption was expanded to characterise the crime as a phenomenon involving the private sector. Estonia has also adopted laws to combat corruption, established a complex economic crimes department in the Public Prosecutor s Office, and appointed prosecutors to specialise in corruption cases. Yet, the focus of the approach has been on domestic bribery. For instance, Estonia s Honest State anti-corruption strategy for did not explicitly deal with foreign bribery or the OECD Convention. The new anti-corruption strategy for is broader than Honest State in that it covers more public officials and activities in the private sector most. Estonian officials stated that the new strategy would not specifically refer to foreign bribery. 8 OECD (2008) Estonia: Phase 2 - Report on the Application of the Convention on Combating Bribery of Foreign Public Officials in International Business Transactions and the 1997 Recommendation on Combating Bribery in International Business Transactions - 20 June 2008; See Also OECD (2006) Estonia: Phase February

21 The emphasis on domestic corruption has resulted in relative inactivity viz. foreign bribery. At the time of the on-site visit, Estonian authorities, with a few exceptions, had not raised awareness of foreign bribery or the Convention among Estonian public officials or the private sector. For example, the relevant Ministries (Justice, Internal Affairs, Finance, and Economic Affairs and Communications) had made no efforts to raise awareness among their staff. As well, there were no campaigns to inform exporting businesses and relevant professionals (accountants, auditors, lawyers) about the foreign bribery offence, or to encourage the development of corporate internal compliance programmes, as proposed in the Revised Recommendation. No efforts have been made either to promote the OECD Guidelines on Multinational Enterprises (which includes a chapter on domestic and foreign bribery) among enterprises active in foreign markets. It was only after the on-site visit that the Ministry of Economic Affairs and Communications and Enterprise Estonia decided to promote the Guidelines through the Internet and seminars for entrepreneurs. At a conference after the on-site visit, the Minister of Justice also referred to the Convention and the importance of fighting foreign bribery in a speech. The representatives of government, business and NGOs also agreed to draft general principles on business ethics. The low level of awareness negatively impacts the prevention, detection and prosecution of foreign bribery. For example, Estonian public officials are obliged to report criminal offences to law enforcement. However, government personnel who are in a position to prevent and detect foreign bribery may not do so because of a lack of awareness, thus leaving such illegal activities undetected. There are exceptions, such as references to foreign bribery in the seminars held by Enterprise Estonia. Another bribery or the Convention (Enterprise Estonia Yearbook 2006; Web site of Enterprise Estonia, ) Estonian enterprises have significant trade and investment links with countries that are widely considered to be rife with corruption. Civil society representatives suggested that bribery would be seen by many Estonians as a necessary evil when doing business in some countries. Estonian authorities have a key role in raising awareness of the Convention and the offence of foreign bribery. There is a need to proactively engage civil society and the general public to raise the profile of the foreign bribery offence and the Convention. In this regard, it is necessary to highlight the offence of foreign bribery in anti-corruption programmes. Initiatives that target corruption generally are not sufficient. The Ministry of Justice partly remedied this problem by introducing the issue of foreign bribery into Estonia s anti-corruption strategy for (b) Private Sector Initiatives to Raise Awareness (i) The Business Sector. The private sector has invested very little effort to raise awareness of foreign bribery or the OECD Convention, which likely reflects the Estonian authorities corresponding lack of action. By the time of the on-site visit, the only effort taken was a seminar 21

22 arranged with the support of, inter alia, the Estonian-U.K. Chamber of Commerce and the Embassy of Sweden. Three additional seminars on business ethics in the past year did not specifically address foreign bribery. The Estonian Chamber of Commerce only provided a link to the OECD Guidelines on Multinational Enterprises on its Web site. Another likely symptom of this inaction: the examiners did not meet any Estonian enterprises; only the subsidiaries of three foreign multinationals attended the on-site visit. Estonia explains that the overwhelming majority of Estonian enterprises are small or medium-sized enterprises that do not invest abroad, and that most prospective enterprises are owned by foreign investors. In the examiners view, however, some Estonian enterprises nevertheless do operate internationally. Representatives of Estonian civil society were of a similar view. Given this lack of awareness, there are expectedly few corporate compliance measures to combat foreign bribery. A model code of conduct prepared by the Chamber of Commerce does not refer to foreign bribery. Estonian business organisations do not have model compliance programmes, nor have they promoted codes of conduct prepared by organisations outside Estonia. The stock exchange s model corporate governance code does not deal with bribery. The Estonian subsidiaries of foreign multinationals are subject to their parent companies codes of conduct. One Estonian academic felt that these codes have not been implemented effectively. Local enterprises generally do not have codes of ethics, according to NGOs. Estonian business organisations are aware of the need for greater efforts in terms of awareness-raising and prevention. At the on-site visit, they expressed willingness to develop, in partnership with the Estonian authorities, specific activities addressing foreign bribery risks in the framework of the new anti-corruption strategy for (see also Table 1.C and ). (ii) Civil Society. The inactivity in raising awareness of foreign bribery extends to Estonian civil society. NGOs (including the local chapter of Transparency International) told the examiners that Estonian civil society and the media so far have not been particularly active in scrutinising how Estonian businesses behave abroad. Efforts have primarily been devoted to fighting domestic bribery. Reporting, Whistle blowing and Witness Protection (a) Duty to Report Crimes. Estonian public officials have a duty to report crimes of bribery. Public officials/servants must report corrupt acts to the head of their agency, the police, the Security Police or the Prosecutor s Office. Failure to report may result in a fine and/or disciplinary sanctions, including termination of employment. In the examiners view, the existence of such a duty to report is positive. However, the effectiveness of such a reporting duty is tempered by the lack of awareness of the foreign bribery offence among Estonian public officials. 22